3M Co. (NYSE:MMM), which makes Scotch tape and construction and safety materials, cut its full-year profit guidance and posted weaker-than-expected first-quarter profit as demand for its products decreased and the U.S. dollar strengthened. Shared fell in early trading.
In a statement released on Thursday, the St. Paul, Minnesota-based company projected 2013 profit to range between $6.60 and $6.85 per share in 2013, down from a previous projection of $6.70 to $6.95 per share. Analysts, on average, had predicted a profit of $6.83 per share.
“Considering the stronger U.S. dollar and softer demand in some end markets, it is prudent to alter our outlook a bit for 2013,” the company said, citing CEO Inge G. Thulin.
Foreign currency translation is expected to reduce full-year sales by approximately 1.5 percent, according to the statement. 3M previously anticipated no impact to 2013 sales from foreign currency translation, it said.
First-quarter profit trailed analysts' expectations. Net income in the three months that ended March rose to $1.129 billion, or $1.61 a share, from $1.125 billion, or $1.59 a share, in the year-earlier period. The average estimate of 15 analysts was for a profit of $1.65 a share.
Sales increased 2 percent to $7.63 billion, an all-time first quarter record, but below the average projection of $7.81 billion, due to currency fluctuations.
Operating profit in its industrial division, the company's biggest division by revenue, dropped 3 percent to $576 million.
3M's shares snapped four days of gains, sliding as much as 3.1 percent to $104.52 in early trading on Thursday. The stock paired year-to-date gains to approximately 12 percent.